Guo Wengui Found Guilty of $1 Billion Crypto Scheme
Guo Wengui, a Chinese billionaire known for his outspoken criticism of the Chinese Communist Party (CCP), has been found guilty of a $1 billion crypto scheme. The self-exiled businessman was convicted of nine charges, including racketeering conspiracy, securities fraud, wire fraud, and money laundering.
The US Securities and Exchange Commission (SEC) accused Guo of orchestrating a fraudulent securities offering in 2020 with the launch of a cryptocurrency called “H-Coin.” Guo was also accused of using social media to deceive investors, promising them large returns from his media company, GTV Media Group Inc., which he co-founded with former Trump advisor Steve Bannon.
Guo’s Lavish Lifestyle
Prosecutors argued that Guo used the money he raised from investors to fund a lavish lifestyle, buying a 50,000 square foot mansion, a $3.5 million Ferrari, two $36,000 mattresses, and a $37 million luxury yacht.
Defense Claims
Guo’s defense argued that his spending was part of a political movement and a way to criticize the CCP. They claimed that Guo “didn’t care about the money, he cared about the movement.”
The Verdict
After a two-month trial, a jury found Guo guilty of nine of the twelve charges against him. He is scheduled to be sentenced in November and could face decades in prison.
This case serves as a reminder of the importance of due diligence when investing in cryptocurrencies. Investors should be wary of promises of unrealistic returns and always research any investment opportunity thoroughly before investing.
